Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Earnings Watch: 4th Quarter Profit for Volvo Jumps 86%

The parent company to truck and engine manufacturers Volvo and Mack on Wednesday reported sharply higher income for the final quarter of 2016. However, the Bulldog brand last year reported its weakest number of deliveries in several years.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
Read Evan's Posts
February 1, 2017
Earnings Watch: 4th Quarter Profit for Volvo Jumps 86%

 

3 min to read


The parent company to truck and engine manufacturers Volvo and Mack on Wednesday reported sharply higher income for the final quarter of 2016. However, the Bulldog brand last year reported its weakest number of deliveries in several years.

Profit for Volvo AB, also known as Volvo Group, was 4.82 billion Swedish kronor, or $551 million, according to MarketWatch, up 86% from 2.59 billion kronor in the fourth quarter of 2015 and better than analysts were expecting. Revenue increased 3.7% to 82.56 billion kronor.

Ad Loading...

For all of 2016, Volvo said net income fell by 12.4% to 13.2 billion kronor or $2 billion, while revenue decreased 3% to $301.9 billion kronor.

“Our profitability improved with an adjusted operating margin of 7% for the full year 2016,” said Martin Lundstedt, president and CEO. “This reflects our ability to manage volume changes in different regions as well as continued cost reductions and productivity improvements. The fourth quarter followed the pattern of previous quarters with somewhat improved profitability on lower volumes.”

He said that in Europe truck demand continues to be “high due to good freight volumes combined with low fuel prices and interest rates that support our customers’ profitability.” On the other hand, the North American market was not as good with retail deliveries down 19% in 2016 compared to the exceptionally strong market in 2015.

“The downward correction in the North American highway segment continued, but with some signs of stabilization as the industry’s inventory of new trucks came down to more healthy levels,” Lundstedt said. “However, there is still an overhang of used trucks in the market that will continue to dampen demand.”

Overall, Volvo AB delivered 50,489 trucks in the fourth quarter, which is 10% less than the preceding year. However, he pointed out that in 2016 the company completed a restructuring plan to have a significantly lower structural cost while divesting of two operations.

Ad Loading...

Worldwide deliveries of Volvo brand trucks fell 8% in the fourth quarter from a year earlier to 27,934 while declining 9% for all of 2016. The declines at Mack were much greater, 42% in the fourth quarter to 4,119 trucks, while deliveries fell 31% for all of last year versus 2015.

According to The Morning Call of Allentown, Pennsylvania, the results were not unexpected, considering Mack's performance in 2015 was its strongest since 2006.

“Because of the reduced demand in 2016, Mack scheduled several down weeks at its 1-million-square-foot Lower Macungie Township facility, where all Mack trucks built for the North American market and export are assembled,” the newspaper reported. “The most recent temporary layoff week for workers at the plant came during the week of Jan. 2, which was added after Mack reported a 40 percent decline in third-quarter deliveries.”

Volvo AB also reported quarterly gains in net sales of its construction equipment and buses and in its marine business along with its financial services operations.

More Equipment

PlusAI, Traton Group autonomous truck partnership.
Equipmentby News/Media ReleaseFebruary 2, 2026

Traton, PlusAI Accelerate Factory-Built Autonomous Truck Launch in U.S. and Europe

The companies also said they plan to coordinate deployment planning across priority freight corridors and define routes and operational design domains for U.S. commercial service while laying the groundwork for expansion into key European markets.

Read More →
SponsoredFebruary 1, 2026

Stop Watching Footage, Start Driving Results

6 intelligent dashcam tactics to improve safety and boost ROI

Read More →
Volvo Trucks FH.
Equipmentby News/Media ReleaseJanuary 29, 2026

Volvo Repeats as Europe’s Heavy-Truck Market Leader in 2025

Volvo Trucks held onto the top spot in Europe’s heavy-duty truck market for the second straight year.

Read More →
Ad Loading...
Western Star's Star Nation 2025 in Bend, Oregon.
Equipmentby News/Media ReleaseJanuary 24, 2026

Western Star Opens Entries for 2026 Star Nation Experience

Previous Star Nation events have included driver challenges, exclusive access to Daimler Truck North America facilities and hands-on experiences with the latest Western Star X-Series lineup.

Read More →
Volvo VNL tractor.
EquipmentJanuary 22, 2026

Europe’s HayWay Group Enters U.S. Market with Order for 80 Volvo VNLs

HayWay Group comprises 19 companies operating across Europe and the U.S. and is now bringing its international logistics experience to North America.

Read More →
SponsoredJanuary 19, 2026

3 New Ways Fleet Software Pays: ROI opportunities for modern fleet managers

Safety, uptime, and insurance costs directly impact profitability. This eBook looks at how fleet software is evolving to deliver real ROI through proactive maintenance, AI-powered video telematics, and real-time driver coaching. Learn how fleets are reducing crashes, defending claims, and using integrated data to make smarter operational decisions.

Read More →
Ad Loading...
SponsoredJanuary 19, 2026

Basic Tracking vs Next Generation Fleet Technology

Fleet software is getting more sophisticated and effective than ever, tying big data models together to transform maintenance, safety, and the value of your existing tech stack. Fleet technology upgrades are undoubtedly an investment, but updated technology can offer a much higher return. Read how upgrading your fleet technology can increase the return on your investment.

Read More →
PlusAI-T2 Japan autonomous partnership.
Equipmentby News/Media ReleaseJanuary 16, 2026

PlusAI, T2 Partner to Bring Level 4 Autonomous Trucks to Japan

PlusAI is seeking to relieve Japan’s acute truck driver shortage by accelerating the adoption of autonomous trucks in the country.

Read More →
Three Freightliner fifth-generation Cascadia trucks are shown parked in a lineup, highlighting exterior design and aerodynamic styling.
Equipmentby News/Media ReleaseJanuary 13, 2026

Freightliner Cascadia Receives Prestigious Design Award

Freightliner’s fifth-generation Cascadia earned a 2025 Red Dot Design Award for its aerodynamic design and functional updates developed through close collaboration between designers and engineers.

Read More →
Ad Loading...
2026 Mack Anthem.
EquipmentJanuary 13, 2026

Mack Begins Redesigned Anthem Production

Mack’s new Anthem Class 8 tractor targets regional-haul fleets with enhanced maneuverability and fuel economy gains.

Read More →